Gitanjali Annual Net Profit Up 69%

Gitanjali Gems Ltd reported a 68.6 percent rise in net profits on a 19 percent rise in net sales during the 2008 fiscal year, the diamond and jewelry manufacturer reported in a statement to the Bombay Stock Exchange.

Net sales for the firm rose to Rs. 26.54 billion ($617.5 million) for year ended March 31, from Rs. 22.19 billion ($516.29 million) in the prior year, while net profit increased to Rs. 13.82 billion ($321.54 million) against Rs. 8.19 billion ($190.55 million) the year before.

During the last year, Gitanjali has entered into a number of tie-ups and joint ventures with overseas companies to market their branded jewelry, watch and other lifestyle products. It has also acquired a number of jewelry and watch brands within India.

Media reports claim the company is making a bid to buy bankrupt retail chain Whitehall Jewelers at a price of Rs. 35-40 million ($814,000-$931,000). While company officials declined to comment on the deal, Executive Director G.K. Nair told the media that Gitanjali is in a position to leverage its balance sheet for possible acquisitions.

Gitanjali informed the Exchanges that as of March 31, the balance from its Indian IPO and its overseas FCCB and GDR issues have been kept in banks “pending utilization.”